The caretaker government has initiated efforts to devise a revival plan forPakistan Steel Mills (PSM), an entity that has remained non-operationalsince June 2015. This significant development was disclosed by thesecretary of the Ministry of Industries and Production during a briefingsession held by the Senate Standing Committee. The committee, chaired bySenator Khalida Ateeb, convened to discuss the pressing issue of PSM’sfuture.
Caretaker Federal Minister for Privatisation, Fawad Hassan Fawad, expressedhis interest in acquiring a presentation on the proposed revival plan forPSM. The secretary affirmed that the government is committed to the revivalof this crucial industrial asset. This revelation sparked both hope andcuriosity within the committee members.
However, the committee members were taken aback by the secretary’sstatement as they had previously been informed that the lack of gas supplyand a substantial reduction in the workforce, from approximately 25,000employees to a mere 3,000, had rendered PSM inoperative. Furthermore, theabsence of a CEO and a Board of Directors at PSM since August 2022 added tothe complexity of the situation. The committee requested that the revivalplan for PSM be shared with them once it is finalized.
To shed light on the financial aspects of the issue, the Chief FinancialOfficer (CFO) of PSM provided a detailed breakdown of operationalexpenditures. He highlighted that the Steel Mill had ceased its operationsin 2015, leading to zero production capacity in subsequent years. Althoughthe fiscal year 2021-22 recorded a profit of Rs7.149 billion, primarilyattributed to the revaluation of “Investment Property,” the corporation hadincurred substantial losses in the previous years. Gross losses werereported at Rs6.058 billion in 2021-22, Rs7.293 billion in 2020-21, Rs5.803billion in 2019-20, Rs5.249 billion in 2018-19, and Rs7.469 billion in2017-18.
Read Top Stories
The discussion within the committee highlighted the daunting challengesthat lie ahead in resurrecting Pakistan Steel Mills, given its prolongedperiod of inactivity and financial setbacks. Nevertheless, the government’scommitment to formulating a revival plan offers a glimmer of hope for thefuture of this vital industrial asset
